The publication of the Union Connectivity Review, which was commissioned by the Prime Minister, said it supported the proposal for the major upgrade on the border route.
It states: "The Pant-Llanymynech bypass was raised by numerous stakeholders and is important for crossborder connectivity in Mid Wales. The review welcomes the inclusion of the scheme in the pipeline of potential schemes for the third Roads Investment Strategy."
Neil Shastri-Hurst, the Conservative candidate for North Shropshire at next month's North Shropshire by election said he backed the news, and voiced his pledge to campaign for the dualling of the A5 if he is elected.
Mr Shastri-Hurst said: "The Union Connectivity Review shows how a better connected UK-wide transport network would benefit people in North Shropshire – driving economic growth, supporting job creation, and improving people’s everyday lives.
“I particularly welcome the recommendations to deliver the Pant-Llanymynch bypass, and to upgrade road links through the Welsh Marches, including the A5 – and if I become MP for North Shropshire I will be banging the Government’s door to call for the A5 to be dualled."
A key recommendation in the report is improving connectivity between North Wales and North West England on the A55, M53 and M56 roads.
Rail connections on the North Wales Coast Main Line could also be improved, by utilising HS2 and electrification to better serve North Wales, and for connectivity with Northern Ireland and the Republic of Ireland.
The report also suggests how congestion on the M4 could be reduced, through rapid upgrades and the building of new stations on the South Wales Main Line, as well as easing capacity restrictions at the junctions of the M4, M5 and M32.